The Best High-Growth Tech Stocks Outside of the QQQ

Oracle (ORCL) shares have fallen 40% from highs as AI skepticism weighs on the $561B database and infrastructure company.
IBM trades at 24.8x forward P/E as the $285B firm pursues quantum computing and enterprise AI automation.
Snowflake (SNOW) might reaccelerate sales growth when it reports in early December.
A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

As the AI trade continues its sharp recovery after the mid-November fumble that followed some fantastic quarters served up by the tech titans, investors might be wondering if now is a good time to get back in. Undoubtedly, it seems like there was nowhere to go but lower for the high-multiple tech firms, including the likes of most of the Magnificent Seven, with the exception of Alphabet (NASDAQ:GOOG) and Apple (NASDAQ:AAPL), which hit fresh all-time highs after walking away mostly unscathed from the worst of the November sell-off.

In this piece, we’ll focus on the high-growth tech opportunities that go well beyond the Magnificent Seven and the Mag Seven-heavy Nasdaq 100, which is followed by such ETFs as the Invesco QQQ Trust (NASDAQ:QQQ).

For many, the Nasdaq 100 is the go-to index for those who want more tech and AI than the S&P 500 can currently provide. Arguably, the S&P 500 has evolved into an AI-heavy index after the massive appreciation in the Magnificent Seven in recent years. And while the Nasdaq 100 has a lot of AI and tech exposure to offer self-guided investors, I think it’s missing a few standout names that have been excluded solely because of the stock exchange they trade on. There is one easy fix for the Nasdaq 100-heavy index investors: just buy the high-growth names excluded from the index as a supplement!

In this piece, we’ll check out three names that I think Nasdaq 100 index investors are missing out on:

Not being exposed to Oracle (NYSE:ORCL) shares has been a good thing in the past few months, especially since shares are down 40% from their highs. In a number of prior pieces, I highlighted the crash in the stock as a great buying opportunity for those who had faith in CEO Larry Ellison’s vision. While shares may have yet to hit bottom, I would watch closely as the valuation contracts further as AI skepticism grows.

Just because the AI trade is bouncing back doesn’t mean the indebted firms swinging for the fences on AI will be quick to be forgiven. As of this writing, Oracle stock has sat out the recent recovery in tech and AI stocks. And while Oracle isn’t the only name to be left in the cold amid the market’s bounce-back, I do think the $561 billion database juggernaut and new AI infrastructure grower is a vital mega-cap to hang onto if you want broad exposure to the AI data center buildout.

If AI caution turns back into euphoria and perhaps mania (then, we might find ourselves in a real AI bubble), perhaps investors will be more inclined to view Oracle’s aggression as a positive while more conservative movers in AI potentially miss out on the early profitability gains to be had from the boom.

International Business Machines (NYSE:IBM) is another old-school tech blue chip that’s become a heck of a lot more interesting in the past two years. The legacy firm is in the process of reinventing itself, with impressive quantum and AI innovations that are attracting investor interest after many years of dragging its feet.

As the firm teams up with top forces to make next-generation quantum a reality, I think investors are getting a lot of forward-thinking growth at a potential discount at 24.8 times forward price-to-earnings (P/E). As automation and enterprise AI adoption look to surge, I’d look for International Business Machines to continue its long-awaited resurgence.

Even at over $300 per share, the $285 billion AI titan looks difficult to pass up. And since it’s not on the Nasdaq or the Nasdaq 100, investors might wish to pursue the name as a part of a more diversified tech portfolio.

Snowflake (NYSE:SNOW) isn’t an older tech firm like Oracle or International Business Machines. In fact, it’s a relatively new tech company with a hyper-growth AI narrative and a market cap south of $85 billion (at least as of this writing). Still, you won’t find the AI cloud company on the Nasdaq, and that’s a loss for those who invest solely in the tech-heavy index.

Even after a vicious November plunge (still down around 9%), Snowflake has a lot of catalysts up its sleeves, and as the firm reports in the first week of December, there might be potential for a big growth surprise as new products and robust demand look to reaccelerate the sales growth rate past 30%.

As an essential AI infrastructure play, growth investors should keep the name on their radars as the AI wave really starts to lift the software innovators. Finally, agentic AI seems like a tailwind that might keep Snowflake’s incredible past-year run going for another year or more.

You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. Even great investments can be a liability in retirement. It’s a simple difference between accumulating vs distributing, and it makes all the difference.

The good news? After answering three quick questions many Americans are reworking their portfolios and finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.

finance.yahoo.com
#HighGrowth #Tech #Stocks #QQQ

Related Posts

Leave a Reply Cancel reply